Climate Finance

Public and private climate finance is a central means of implementation for ambitious adaptation and mitigation options. Through our interdisciplinary approach linking science and policy elements we assist stakeholders in developing successful strategies to shift investments towards sustainable development in line with internationally agreed temperature goals.
As part of our negotiation support we assist vulnerable countries in their efforts to implement innovative and transformative approaches for an institutional architecture that is responsive to their needs and circumstances.

Climate Finance is a key element of supporting ambitious action on climate change. We have been closely following the development of a new institutional architecture for international climate finance in the aftermath of Copenhagen. As part of our negotiation support delivered to Small Island Developing States (SIDS) and Least Developed Countries (LDCs), we support negotiators in the UNFCCC and GCF negotiations with on-demand analysis and technical support on all areas of international climate finance. This enables them to formulate an integrated strategy in the implementation of the international climate finance architecture as part of the negotiations for a new agreement that takes into account the needs of vulnerable countries.

Our expertise also includes the analysis and synthesis of technical information regarding the assessment of sources for long-term finance and comparative analysis of elements and options for the operationalization of the institutional climate finance architecture.
In order to facilitate efforts to advance the operationalization of the new climate finance architecture and provide space for informal discussions amongst negotiators and experts, we organize workshops and meetings in cooperation with government agencies, and non-governmental partners.

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The international agreement to limit CO2 in the atmosphere means that governments can no longer commit public funds or, for that matter facilitate private sector funding for carbon-intensive projects. Beyond funding issues there is a growing risk that these investments will create “stranded assets” as economies shift towards renewables. Laetitia De Marez, senior climate policy analyst at Climate Analytics Inc. in New York: “COP 21 was a clear signal to business that any investment in infrastructure has to be low carbon.”

At its latest meeting 2-5 November in Livingstone, Zambia the Green Climate Fund Board strengthened the Fund’s accreditation framework by agreeing on a policy to review every five years to what extent the GCF’s implementing partners’ overall portfolio of activities – beyond those funded by the GCF – have evolved in the direction of the Fund’s goal to promote a paradigm shift. Partners that continue to heavily invest into coal and other fossil fuels are now at risk of loosing their accreditation after their initial accreditation period ends.

2015 is a critical year for the Green Climate Fund as the Fund is set to finally start running its operations, bringing to life the mechanisms that the Board has been designing over the past three years.
In light of this, Climate Analytics' Felix Fallasch and Bianka Kretschmer comment on the GCF's policies on coal.

The annual UNFCCC "In-session Workshop on Long-term Finance" was held on 4-5 June 2015, during the Bonn Climate Change Conference, and focused on adaptation finance. Climate Analytics' Laetitia De Marez facilitated a break-out group on collaborative arrangements for managing climate risks.

With the signature by the Government of Japan to its contribution agreement with the Green Climate Fund (GCF) now almost 60 per cent of the pledges made to the Fund at its first pledging conference in November 2014 are secured through legally binding contribution agreements. Crossing the threshold of 50 per cent of the pledges covered by these agreements gives the GCF Board the authority to start allocating funding to concrete project and programme proposals. This is a major milestone in the evolution of the Fund and successfully completes a four-year design phase that has shaped the operational policies and procedures of the GCF.

While the GCF is getting ready to disburse resources, it still awaits authorisation to start committing its resources to specific projects:
According to the Fund’s contribution policies, this commitment authority is triggered when contributors realise their pledges through signing official legally binding contribution agreements for 50 per cent (USD 4.7 billion) of the total pledges made to the GCF.

PM lists areas where Australian funds would go, but experts say no country is able to determine exactly where money is spent. Climate Analytics international climate finance expert Felix Fallasch said the ultimate decision-making authority over any funding was exclusively with the fund’s board.

2014, December 10

Publications

The Green Climate Fund Board met for the 13th time 28-30 June 2016 in Songdo, Republic of Korea. This report outlines the key messages for policymakers from Small Island Developing States (SIDS) and Least Developed Countries (LDCs).

During its 12th meeting, the Green Climate Fund Board adopted a new Strategic Plan for the fund. This report contains an overview of key decisions, summary of the meeting outcomes and a summary for policy makers in Least Developed Countries and Small Island Developing States.

With the signature by the Government of Japan to its contribution agreement with the Green Climate Fund (GCF) now almost 60 per cent of the pledges made to the Fund at its first pledging conference in November 2014 are secured through legally binding contribution agreements. Crossing the threshold of 50 per cent of the pledges covered by these agreements gives the GCF Board the authority to start allocating funding to concrete project and programme proposals. This is a major milestone in the evolution of the Fund and successfully completes a four-year design phase that has shaped the operational policies and procedures of the GCF.

While the GCF is getting ready to disburse resources, it still awaits authorisation to start committing its resources to specific projects:
According to the Fund’s contribution policies, this commitment authority is triggered when contributors realise their pledges through signing official legally binding contribution agreements for 50 percent (USD 4.7 billion) of the total pledges made to the GCF. The following briefing note provides an update on the status of contribution agreements signed by contributor countries as of 30 April 2015 - the Fund's initial deadline to reach the 50 percent threshold.

Produced in collaboration with the African Climate Finance Hub, the report says deep global emissions reductions are the best way to head off Africa’s crippling adaptation costs. It also finds that the continent’s domestic resources are insufficient to respond to projected impacts, but would be important to complement international funding for African countries – including meeting the Cancun climate finance commitments by 2020.
The report also explores the extent to which African nations can contribute to closing the adaptation gap – especially in the area of identifying the resources that will be needed.

2015, March

Projects

IMPACT is a cross-cutting, multi-faceted project that aims to strengthen the connections between the scientific assessments of climate impacts, vulnerability and adaptation to help enable access to finance and help Small Island Developing States (SIDS) and Least Developed Countries (LDCs) implement concrete projects.

Climate Analytics provided conceptual and organisational support for the Green Climate Fund Readiness Meeting on 11–12 July 2013 in Bridgetown, Barbados, organised in a partnership between GIZ, CDB, and the GCF Board.
Project Period: 2013